Posted on 04/11/2022 3:39:32 AM PDT by Kaslin
Last week, Bernie Sanders, the most famous socialist in America, tweeted, “Cancel student debt. All of it.” It was just the latest screed in what has become a common theme for radical leftist Democrats, appeals to essentially pay off a key political constituency at the expense of working, responsible Americans. It’s disgusting pandering in the worst possible way, yet media and policy makers continue to treat it as a serious proposal rooted in altruism and the desire for equity, whatever that means.
While resident Joe Biden has thus far resisted such calls (other than Covid-related pauses on interest and payments), there are increasing rumblings afoot that he could attempt to erase anywhere from $10,000 to $50,000 of student loan debt per person with nothing more than a stroke of the pen. Whether the Constitution grants him this kind of authority remains to be seen, but such questions have never stood in the way of these kinds of leftist power grabs before, and I suspect they won’t this time around either.
Currently there’s around $1.75 trillion of student loan debt out there, a number that would seem far loftier were it not for the many trillions printed and distributed out of nothing for recent “Covid relief.” It’s owed by around 45 million people, upwards of one in four Americans. On average, they owe $37,000 and make payments of around $400 a month, the equivalent of what a decent vehicle would cost these days. Nevertheless, manipulative media portrayals of poor, hapless millennials unable to build a life or buy their daily Starbucks latte because they can’t see their way out from under a mountain of self-imposed college debt abound.
(Excerpt) Read more at townhall.com ...
So is the Government going to pay these debts itself or are the lending institution just SoL? If it's the latter, the result will likely be that no lending institution will make student loans or start charging some absurdly high interest rate going forward.
Women owe a disproportionately high amount of the total student loan debt. Women are also more likely to have high amounts of debt. Some of this is likely due to the fact that female bachelor’s degree holders are paid 74% of what their male peers make.
Female students are more likely to obtain student loans for themselves.
$929 billion in student loan debt belongs to women.
Women hold 58% of all student loan debt.
Female student borrowers have an average debt is 9.6% higher than their male peers one year after graduation.
Women take an additional two years on average to pay off student loans.
Black women have the highest average amount of debt.
Asian women have the lowest average amount of student loan debt.
Women of color who borrow money to pay for college are 12% more likely to have student loan debt than majority women.
Women of color are 20% more likely to have student loan debt than majority men.
The average Black woman’s student loan debt grows 13% in their first 12 years of repayment.
In the same period, the average White woman’s student loan debt shrinks by 28%.
White men, in comparison, see their student loan debts drop by 44%.
That's not at all what it's like.
In junior year of HS, schools start with "let's see how much financial aid you deserve, have your parents fill out your FAFSA" (I actually did this, once).
Acceptance letters contain "estimated Federal student aid" (these are loans).
Nobody signs anything, ever.
First day on campus, in the gym or stadium or wherever, there are sign-up tables for lacrosse, glee club, and financial aid. Getting the latter is like answering "yes" or "no". A lot of students say "yes".
One of my kids had a $5000 "grant" that was a loan, it took six months to get it off the books because admin was stunned - no one had ever objected before.
The system is rotten to the core. These Federal "loans" are direct cash to colleges which are financed (on the books) by calling them "loans" to unaware, non-credit worthy persons. These are the only unsecured loans in America not dischargeable in bankruptcy.
This has permitted enormous inflation in tuition and fees, with no accountability, to serve the interests of the Deep State.
The whole issue makes no sense at all.
But it’s sort of at the level of “Would you like it if I gave you a pile of money?” Most people would say “Yes”. But why should that happen? And only some people get it (if you finished paying off your loans some years ago, I guess you’re a sucker). And if you skipped college because you wanted to avoid debt and ended up working in other areas, I guess you get nothing at all. There is really a very small subset of people who suddenly hear the magic words: “Would you like it if I gave you a pile of money?”
This is not how a decent society is run. It’s vote buying.
And no point in paying any debt if they can simply make it vanish with a wave of their smells-like-used-diapers hand.
I think one thing we are missing here is that a number of jobs which used to be for 40-year old people without a degree....now pay for the same level but mandate for people to have a bachelor’s degree. Example: rental car company supervisor.
“how the Government can “cancel” a binding legal contract”
Not sure either but be aware I identify my home loan and all of my debt now as a student loan.
Women are far more likely than men to get useless, non-remunerative college degrees.
Easy!
Print more money and give it away to ‘student debtors’.
of course, this would only work once before full-blown communism is the law of the land:
“To each according to his needs...
I think the other thing being missed is that the tech jobs many of these students trained for were outsourced by the free traitors.
I don't have any sympathy for the self righteous students who got into debt for their degrees in "Homosexuality in Homo Sapiens" studies or spent their loan money partying, but the students who trained for tech jobs were stabbed in the back by the generation that encouraged them to train for the tech jobs.
Of course with the leftists in charge, we know which side will be bailed out.
Great. Universities can continue paying one nut $458,000. a year to teach one class. And she thinks she is native American. Not so.
Canceling student loan debt would be in effect a bailout for the elite, who attend college, as well as the colleges and universities who continue to raise tuition prices without any attachment to an economic reality. The net result is college will become yet even *more* expensive.
The student loan debacle is the housing bubble 2.0.
He will “cancel” the loans fully when it is politically advantageous for him to do so. Even if he has no right to do it, and it is unfair, and will result in taxes being raised.
Statistically, females tend to be very gullible ... allowing them to vote has proven to be the biggest blunder in U.S.A. history.
Nope.
BLAME could be placed if this happens.
However; the invincible boogie-man INFLATION will rule the day.
Just print more paper and put it in circulation.
Emphasis on “inflation in tuition and fees.”
These debts are to the federal government or to banks guaranteed by the federal government. It is tax money that is lost with every default. With all that I would support cancellation of all federally backed student loans IF it were to be accompanied by taking the federal government totally OUT of the business of granting or supporting any sort of student loans. Better would be a total ban on federal government money going to any educational institution or organization for any reason, the only exception to be schools on military bases outside of the USA.
A solution no one mentions, why not eliminate the prohibition on discharging student loans in bankruptcy. Bankruptcy is the logical solution within our legal system. Yes, it does cause pain to those who use it to cancel legally assumed debt. And it does nothing for debtors who can pay, but would like a get out of debt card.
Biden has a strong precedent. Obama cancelled GM debt. In doing so, he stole my retirement money.
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